RBL Bank (RBLBANK) Q2 25/26 earnings summary

Executive summary

• Announced a landmark $3 billion (₹26,853 crore) strategic investment by Emirates NBD for a 60% stake, subject to regulatory and shareholder approvals, positioning the bank among the best capitalized in India and resulting in a change of control.

• Board approved unaudited standalone and consolidated financial results for Q2 FY26, with net profit of ₹178.5 crore (standalone) and ₹192.5 crore (consolidated), and a preferential issue to Emirates NBD.

• Advances crossed INR 1 lakh crore, with a retail-to-wholesale mix of 60:40 and strong growth in secured business loans and working capital portfolios.

• Focus on granularization of advances and deposits, retail mix optimization, and de-risking of the portfolio.

• Scheme of amalgamation approved for Emirates NBD's India branch with the bank, with share allotment as consideration.

Financial highlights

• Net worth expected to rise to INR 42,000–44,500 crore post-transaction; current standalone net worth at ₹14,976.96 crore as of September 30, 2025.

• Gross NPA at 2.32%, Net NPA at 0.57% as of September 30, 2025; provision coverage ratio at 75.92%.

• Net Interest Margin (NIM) stood at 4.51% in Q2 FY26, with guidance for 4.75–4.8% exit NIM for FY26.

• Core fee income grew 17% sequentially and 13% year-over-year to Rs. 926 crore; operating profit for Q2 FY26 was Rs. 728 crore.

• Capital adequacy ratio at 14.71% (Basel III); CET-1 at 13.51% as of September 2025.

Outlook and guidance

• Strategic capital infusion and amalgamation expected to provide a growth runway for 5–7 years, strengthen capital base, expand product offerings, and enhance scale and efficiency.

• Potential for 30%+ loan book growth over the next couple of years, leveraging expanded distribution and product offerings.

• Focus remains on retail-led growth, digital enablement, and maintaining healthy asset quality.

• Board to convene EGM on November 12, 2025, to seek shareholder approvals for all major proposals.